What amount of interest expense related to liability

Assignment Help Financial Accounting
Reference no: EM132833094

Question - On January 1, 20X2, Serenity Inc. issued a five-year note payable for $200,000 and received $190,000 in cash. The note bears interest at 6%, which is paid annually on December 31. There were $5,000 in directly related legal costs with respect to the note payable that Serenity paid in cash. Serenity has classified the note as an "other financial liability." The company has a May 31 year end and reports under IFRS. Serenity calculates interest based on the numbers of days the liability is outstanding. January 1, 20X2 - May 31, 20X2 is 151 days. What amount of interest expense related to this financial liability will Serenity recognize for its 20X2 fiscal year?

Reference no: EM132833094

Questions Cloud

Find what is total cash receive from financing of receivable : Which charged a factoring fee of 2% of A/R factored and withheld 10%% of the A/R factored. What is the total cash received from the financing of receivables?
What consolidating entry adjustment is necessary : In preparing the consolidated financial statements for the year ended December 31, 2019, what consolidating entry adjustment is necessary
Custodial interrogations : What does the phrase "bright line" established in Miranda v. Arizona mean, and what impact has it had on custodial interrogations?
Discuss the types of risks affecting event organizations : The organization of events involves risks. Discuss the types of risks affecting event organizations and how these can be minimized or prevented.
What amount of interest expense related to liability : January 1, 20X2 - May 31, 20X2 is 151 days. What amount of interest expense related to this financial liability will Serenity recognize for its 20X2 fiscal year
Describe the background of the company : A. Described the background of the company (Note: This section should set the context for the analysis)
What is the history of right to work laws : What is the history of 'Right to Work' laws? Where did they come from? Who proposed them and why? Has their purpose or effect changed since original inception?
Calculate the current market price of the bond : The rate of return is 11.5 %. Calculate the current market price of the bond and justify your findings if current market price of the bond TK. 1070.
Determine the maximum sustainable growth rate : Assume your retention rate for retained income is 0.75. If return on assets is 18% and your return on equity is 25%. Determine maximum sustainable growth rate

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate lopezs cost recovery deduction for 2015

Calculate Lopez's cost recovery deduction for 2015 if the building is:- Classified as residential rental real estate.- Classified as nonresidential real estate.

  Explain the shortcomings

Explain some of the actions of Media Tech leadership and the audit team based on the Fraud Triangle. Explain how Laura is being pressured

  What is the original cost of asset

Company sold office equipment for cash of $142,000. The accumulated depreciation at date of sale amounted to $138,000, and a gain of $18,000 was recognized on the sale. what is the original cost of asset.

  At that reserve price what is the expected profit

What is the best reserve price?- At that reserve price, what is the expected profit? - At that reserve price, what is the standard deviation of profit?

  Calculate the depreciation expense for the year

Calculate the depreciation expense for the year using the composite method for 2010 and 2011 and calculate the depreciation expense for the year on the ties using the group method and compute the group depreciation rate for 2011.

  What annual pension benefit will receive

Earnings to be $85,000 and the YMPE in the final year to be $55,300, what annual pension benefit will he receive when he retires after 20 years of service?

  What is the current value of the stock after paying dividend

UNT Inc. has just now paid a dividend. If required rate of return on the stock is 14 percent, what is the current value of the stock, after paying the dividend?

  Issue of the buildings future sales value

What response will you give in the meeting if Tony brings up the issue of the buildings future sales value?

  About the partnership interest

Dan  purchases a 25% interest in the Haymarket Partnership for $20,000 on January 1, 2004, and begins to materially participate in the partnership's business. The Haymarket Partnership uses the calendar year as its tax year.

  Which not true regarding the work-in-process inventory

Which NOT true regarding the Work-in-Process Inventory account? the Work-in-Process Inventory account is credited for the manufacturing costs assigned

  Capitalization of interest and depreciation

During 2014, Sparrow Inc. borrowed $88,000 from a local bank. In addition, Sparrow used $120,000 of cash to construct a new corporate office building. Determine the acquisition cost of the new building. The building has an estimated useful life of 20..

  Prepare the statement of stockholders equity at end of year

Prepare the statement of stockholders' equity at the end of the year (December 31). Prepare the income statement for Longhorn Corporation.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd